Negative AMT adjustments for the current year caused by timing differences are offset by the positive AMT adjustments in prior tax years also caused by timing differences.

Question

Quizplus · Accepted Answer

This is true. The AMT system is designed to ensure that taxpayers with certain types of deductions or credits do not escape paying a minimum amount of tax. In some cases, taxpayers may have timing differences between when certain deductions or credits are claimed for regular tax purposes versus AMT purposes. Negative adjustments in the current year due to timing differences are generally offset by positive adjustments from prior years, as the AMT system seeks to equalize the tax treatment over time.

Negative AMT Adjustments for the Current Year Caused by Timing